Micron Technology said it would lower costs, including by cutting jobs and focusing on fewer programs, provided the challenging market environment. "Although we have made good progress in deploying our advanced DRAM and NAND technologies, we continue to face challenging market conditions," said Micron CEO Mark Durcan. "To address the current market environment and strengthen our competitive position, we are implementing a number of initiatives to reduce costs, drive greater efficiencies, and increase focus on our strategic priorities."

Micron said the initiatives include the resuction of its headcount by about 7.5 percent, or 2,400 jobs. The company expects to save the company over $300 million in fiscal 2017.

Micron has been investing to boost production of its higher-margin 20 nanometer DRAM chips and develop more efficient 3D NAND chips.

Micron's third-quarter sales dropped 24.8 percent to $2.9 billion. It expects current-quarter sales to drop 11.1-19.4 percent.

Revenues for the third quarter of fiscal 2016 were slightly lower compared to the second quarter of fiscal 2016 as increases in sales of DRAM products were offset by decreases in sales of trade Non-Volatile products. DRAM revenues increased in the third quarter of fiscal 2016 as a result of a 22 percent increase in unit sales partially offset by an 11 percent decline in average selling prices. Sales of trade Non-Volatile products decreased due to a 10 percent decrease in units sales and a six percent decline in average selling prices.